The IRS has released proposed regulations imposing a $50 per year user fee on paid return preparers. The fee is to be paid in connection with an application for a preparer tax identification number (PTIN) and annual renewal of the PTIN. A third-party vendor will administer the program and may charge an additional fee.
The proposed regulations reflect an apparent shift in thinking, as informal statements by officials had previously indicated that preparers would renew their registrations once every three years rather than annually.
The requirement to obtain and annually renew a PTIN takes effect in 2011 and will apply to all paid tax return preparers, including registered tax return preparers, enrolled agents, CPAs and attorneys.
